he great change that has come about in outsiders' ideas about India dates back only to 2003. In that year, Edward Luce—the London Financial Times
reporter in Delhi—wrote what was then a conventional commentary on the state of the Indian economy following the presentation of the budget. India's growth remained erratic, and the country's economic potential was still shackled by inefficient state intervention. The burden of subsidies continued to drive up public sector deficits; the economy remained starved of investment in infrastructure. Economic reforms were not being pursued with the necessary vigour. International capital remained largely uninterested in India, while foreign investment continued to pour into China. Indian industry was still not internationally competitive. Trade restrictions were still too great. Luce and the Financial Times
chief economic editor, Martin Wolf, wrote a longer article in a similar, familiar...